Sean Quinn jokingly said “I should kill you” if he revealed the Anglo position

Businessman Seán Quinn jokingly told Tom Browne in 2007 that he “should kill” the then Anglo Irish Bank executive if he revealed to him the Quinn Group’s true stake in the bank , learned the High Court.

After months of rumors, Mr Browne said during a tour of properties in Russia and Ukraine in July 2007, that he had questioned Mr Quinn directly about his stake in Anglo.

“He laughed at me and said jokingly ‘Of course if I told you I should kill you'”.

English loans

Mr. Browne was continuing to testify in a lawsuit against him for the recovery of some 30 million euros in loans that Anglo had granted to him before he left the bank in September 2007. The action is brought. by special liquidators appointed to Anglo’s successor, the Irish Bank Resolution Corporation (IBRC), in which judgment is sought because of its default on these loans.

He counter-demanded saying the loans were void due to a fraudulent misrepresentation by Anglo’s silence about the Quinn Group’s involvement in the bank’s ownership. IBRC denies this and disputes his claim that he was unaware of Quinn’s post when he left Anglo in 2007.

Mr Browne said Mr Quinn’s joking remark got him acquainted with the Quinn holding company, based on its purchase of so-called contracts for difference (CfD). This allowed Quinn to ultimately build up a roughly 28 percent stake in Anglo without having to notify the stock market which requires more than three percent to be publicly disclosed.

Contracts for difference

Mr Browne said the CfDs were purchased through stock brokers, with the buyer having an interest but not the ownership. Therefore, if the stock price falls, the buyer of CfD must invest more money in it to maintain the value of CfD.

With the turmoil in the stock market in 2007 and 2008, Quinns had to get loans from Anglo to do this. Mr Browne said that while previously Quinns loans were secured on assets at a 70 percent loan-to-value (LTV) rate, at this point Anglo was providing 100 percent LTV for some $ 750 million. euros in loans in an attempt to stabilize Anglo’s shares, he said.

At the same time, Anglo turned to 10 high net worth clients to buy them € 10million of shares each, with Anglo loans, in an attempt to reduce Quinn’s stake.

Mr Browne said he was unfamiliar with the Quinn holding when he left the bank in September 2007, while renegotiating existing and additional loan facilities.

Alleged false statement

Following an alleged false statement by silence, the wrong committed by Anglo was that he had been loaned money in 2007 on assets (his holdings) which were worth considerably less than he believed. .

Mr Browne said a report prepared by Anglo’s new chief executive, Donal O’Connor, appointed following the resignation of since-jailed CEO David Drumm, was shown to him in 2010. He took note of it. , who said Drumm “informed of SQ (Sean Quinn) Holding CfD (28%) (average cost of € 14)” on September 11, 2007.

He said it showed when Quinn’s position was first known, while Mr Browne’s resignation was announced the week before, on September 4.

Until his last board meeting before his official departure in November 2007, Mr Browne said Quinn’s level of involvement in Anglo was still speculation and rumor.

Ireland

The former Anglo Irish leader has secured a € 9million deal …

He disputed a claim by Michael O’Sullivan, who reported directly to Mr Browne as the loan officer, that at no point was a decision made to exclude him (Browne) from discussions about the position of Quinn CfD in November 2007.

Golden handshake

On cross-examination by Paul Gardiner SC, for the IBCR, Mr. Browne agreed that he left Anglo with “a ‘golden handshake’ of 3.7 million euros”, but has to First stated that then president Sean FitzPatrick had told him that “those days were over” and the negotiations he had been hostile.

When he returned from vacation in August 2007, when he told Mr. FitzPatrick that he was ultimately not going to be leaving, he was offered severance pay. He said he had had a difficult working relationship with David Drumm since 2006.

The case continues.

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